Supply Interruption Supply Chain Network Model with Uncertain Demand: An Application of Chance-Constrained Programming with Fuzzy Parameters

Abstract

The downstream supply interruption of manufacturers is a disaster for the company when the demand is uncertain in the market; a fuzzy programming with fuzzy parameters model of supply interruption supply chain network is established by simulating market operation rules. The aim of the current study is to build a fuzzy chance-constrained programming method which is developed for supporting the uncertainty of demand. This method ensured that the fuzzy constraints can be satisfied at specified confidence levels, leading to cost-effective solutions under acceptable risk magnitudes. Finally, through the case of the electronic product manufacturing enterprise, the feasibility and effectiveness of the proposed model are verified by adopting a sensitivity analysis of capacity loss level and minimizing objective function. Numerical simulation shows that selecting two manufacturing centers can effectively reduce the supply chain cost and maintain business continuity.